international marketing - alana's sauces case study

8/12/2019 International marketing - Alana's sauces case study

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I N T E R N A T IO N A L M A R K E T I N G 2 5 0

F E A S I B I L I T Y S T U D Y

Tutor Name: Sean Lee

Tutorial date: Friday, 09.30 AM

Group Member : Aman Buana Putera (1439 4687)

Elsye Noviana Lestari (16293126)

Muhammad Alfi Rifadli Mansur (16765968)

Purti Danica wijaya (16112852)



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Table of ContentExecutive Summary……………………………………………………………………………………………….3 1.0. Introductions…………………………………………………………................…………………….………32.0. Organization goals, mission, vision and strategies.

2.1. Mission Statement…………………………………………………………………………..…….....3

2.2. Vision Statement……………………………………………………………………………,,……...3 2.3. Goals……………………………………………………………………………………...…………3 2.4. Current Strategy……………………………………………………………………………...……...4

3.0. Environmental Analysis……………………………………………………………………………….……...5 3.1. Political Analysis…………………………………………………………………………………....5

3.1.1. Government Relations………………………………………………………..………5 3.1.2. Corruption………………………………………………………………………….....53.1.3. Public Disorder………………………………………………………………………..5

3.2. Economic Analysis……………………………………………………………………....……….....63.2.1. Inflation Rate………………………………………………………………………….6 3.2.2. Exchange Rate………………………………………………………………………...6 3.2.3. Gross Domestic Product………………………………………………………………6

3.3. Socio-cultural Analysis………………………………………………………………………...……7

3.3.1. Lifestyle……………………………………………………………………………….7 3.3.2. Food Culture…………………………………………………………………………..7 3.3.3. Tourism……………………………………………………………………………….7 3.3.4. Hofstede Cultural Dimensions………………………………………………………..7

3.4. Technological Analysis……………………………………………………………………………..8 3.4.1. Transportation Infrastructure………………………………………………………....8 3.4.2. Telecommunications Infrastructure…………………………………………………..83.4.3. E-Commerce………………………………………………………………………….9

3.5. Environmental Analysis……………………………………………………………………….…..10 3.5.1. Recycled Product………………………………………………………..…………..10

3.6. Legal Analysis……………………………………………………………………………………...10 3.6.1. Consumer Protection Law………………………………………………………….…..10 3.6.2. Packaging and Labelling Law…………………………………………….…….……...10

3.6.3. Corporate Tax………………………………………………………………………...…...104.0. SWOT Analysis……………………………………………………………………………………………..10 5.0. Competitive Audit…………………………………………………………………..……………………....13 6.0. Marketing Objectives………………………………………………………………………………..……...14 7.0. Segmentation Profile………………………………………………………………………………..……....14 8.0. Marketing Mix Strategies…………………………………………………..……………………………….16

8.1. Placement……………………………………………………………………………………….…16 8.1.1. Market Entry Strategy…………………………………………………………….…16 8.1.2. Store Location……………………………………………………………………….17

8.2. Product………………………………………………………………………………………….….18 8.2.1. New Product Development………………………………………………..…….…..18 8.2.2. Packaging, diffusion of the new products………………………………...…….…...18 8.2.3. Quality Regulation………………………………………………………..…………18

8.3. Price……………………………………………………………….……………………………….188.3.1. Market Based Strategy………………………………………………………………....188.3.2. Price Differentials………………………………………..……………………………..18 8.3.3. Discount Carefully………………………………………....…………………………..18

8.4. Promotion…………………………………………………………....…………………………….19 8.4.1. Marketing Source Delivered via Mass Media……….…….…………………………...19 8.4.2. Marketing Source Delivered Personally……………….….………………………...….19 8.4.3. Non-marketing Resources Delivered Personally……….………………………………19

9.0 Implementation and Evaluation Chart……………………………....……………………………...199.1. Implementation Chart……………………………………......…………………………...20 9.2 Evaluation Chart…………………………………………………………………………..21

10.0 Conclusion…………………………………………………………..…………………………….21 11.0. Reference List……………………………………………………...……………………………..22

12.0. Appendix………………………………………………………………………………………………….27



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Alana’s Sauce into I ndonesia

1.0. Introductions – Alana’s Company.

In 2012, Alana‘s developed a new sauce recipe and products called Alana‘s sauce. The

reasons of Alana‘s develop this products because of an involvement in food industry, which

arise form food festivals around Australia, including the hugely popular ‗ Masterchef

Live’ and the national ―Good Food and Wine Show” ( Lowes Alana. 2013). Alana‘s sauce

consist of variety sauce which spice up the meals, however we more intense to sell the

Alana‘s BBQ sauce. Each of these sauces is a homemade recipe developed from distinctive

rich flavors from exotic, yet familiar cultures around the world and provides an exciting and

spicy alternative to the more traditional tomato or straight chili based sauces, they have no

artificial colors, flavorings or dehydrated ingredients. In addition Alana‘s sauce are free from

preservatives, gluten free, and more importantly is the sauce are Australian Made and hallal

certified (Bmag 2013). These products could be only finding in Coles supermarket only and

online shopping through Alana‘s website. In this report will discuss about the organization

vision, mission, and current company strategy, the SWOT and PESTEL analysis will be

apply to find out the strategy to achieve the goals. Also identify the e-marketing strategy to

achieving company goals and the implications (Alana‘s 2013).

2.0. Organization goals, mission, vision and strategies. 2.1. Mission.

Alana‘s mission is to ―Inspiring consumers to experiment with the new flavour s from the

comfort of their own kitchen, and allowing them to ―taste global, but cooks local‖ (Lowes

Alana‘s 2013).

2.2. Vision.

Vision is defined as what the organization or company wants to become in the future (Koren

2012). Therefore, Alana‘s vision is to get awareness in domestic market and overseas, and

contribute in cooking event domestically. (Food and lifestyle 2014).

2.3. Goals.

As a new company that work on the sauce products, the current goals that company want to

achieve is the consumer experience of using Alana‘s sauce in whole region of Australia,

develop more on homemade saucerecipes and the consciousness from many food industry



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around Australia (Lowes Alana 2013). This goals could be stated as a not specific of short

term goals, which need to be considered as a threads of the business.

2.4. Current strategies.

Due to Alana‘s sauces are new to the market, it is difficult to s ell their products to the public.

Furthermore, to be accepted in the market, Alana‘s implemented Porter‘s strategies, which

are overall cost leadership, differentiation, and focus (Fletcher et al. 2014, 302). For the cost

leadership strategy, Alana needs to achieve the lowest costs of production and distribution so

that it can price lower than its competitors and win a large market share. Based on those

strategies, it can be said that Alana‘s Pantry Sauces is already known and get positive

response from the public. However, Alana‘s don‘t have specific corporate goals due to new

company.

3.0. Environmental Analysis.3.1. Political Analysis.

3.1.1. Government Relations.

Indonesia has a strong relationship with another country (Global edge 2012). Indonesia is the

one of the member of the Asia-Pacific Economic Cooperation (APEC). Economic

Partnership Agreement (EPA), Association of Southeast Asian Nations (ASEAN),

Organization of the Islamic Conference (OIC), and Intergovernmental Group on Indonesia

(IGGI) (Global edge 2012). Currently, Indonesia and Australia has a bad political relationship

in term of asylum seekers, human rights and also terrorism (Tapsell 2014). As a result, the

export and import activities will be easier due to the bad political relationship between

Indonesia and Australia. This demostrates that the bad political relationship between

Indonesia and another countries such as Australia will be a threat for Alana‘s Company to

introduce their product to Indonesia (see apendix 3.1.1).

3.1.2. Corruption.

Indonesia has a high level of corruption in 2013 (CORRUPTION PERCEPTIONS INDEX

2013). As a result, Alana‘s Company should be aware for exporting their product due to the

high level of corruption in Indonesia. This demonstrates a threat for Alana‘s Company to

enter the market in Indonesia (see appendix 3.1.2).

3.1.3. Public Disorder.

In 2013, Indonesia has a high level public disorder such as terrorism,conflict,kidnapping,and

also crime (FoxNews, December 31,2013). Because of this reason, the export import



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activities will be harder due to the public disorder in Indonesia. This shows a threat for the

Alana‘s Company to introduce the product to Indonesia (see appendix 3.1.3).

3.2. Economic Analysis

3.2.1. Inflation Rate

Indonesia has an unstable inflation rate compared to Australia. This unstable inflation rate is

relating to the high inflation rate of Indonesia in 2013 (Bank Indonesia 2014). This shows

that a high level of inflation rate will be a threat for Alana‘s Company for exporting their

business to Indonesia (see appendix 3.2.1). This graph has shown the CPI inflation of

Indonesia getting increase that will be decreasing the sales of the sauces (figure 1.0).

Figure 1.0. Chart - CPI inflation Indonesia 2013 (yearly basis)

The average inflation of Indonesia in 2013: 6.97 %

Source: Inflation Indonesia 2013

3.2.2. Exchange Rate.

Indonesia has an unstable currency exchange rate compared to Australia. This unstable

currency exchange rate is relating to the low conversion rate of Indonesia (Money Converter

2014). Because of this reason, Alana‘s Company will be selling their product with the

cheaper price due to the low conversion rate of Indonesia. As a result, This unstable currency

exchange rate will be a threat for the company to expand their business (see appendix 3.2.2).

3.2.3. Gross Domestic Product.

In 2012, Indonesia has a high Gross Domestic Product (GDP) around 878.04 billion US

dollars (World Bank 2014). In addition, Indonesia also has a high GDP growth around 6.2

percent in 2012 (Trading economics 2014). As a result, Alana‘s Company will be increasing

their sales of the product because the customers will be spending more money for buying

their product. That demonstrates a good opportunities for Alana‘s Company for eksporting

their product to Indonesia (see appendix 3.2.3).

3.3. Social-Cultural.

3.3.1. Lifestyle.



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Many various aspects influence the Indonesia‘s lifestyle such as the income level of

Indonesia‘s customers. The income level of the Indonesia‘s society would be likely varies

from low income to high level of income (Survey Jakarta 2009). In addition, most of the

customers who living in the Capital City of Indonesia, Jakarta would be of the middle to high

level of income earners that could afford to purchase the Alana‘s product (Prasetyo and

Yulianitingsih 2009). As a result, Alana‘s company should be aware of the different income

levels within the Indonesia‘s customers. This demonstrates an opportunities for Alana‘s

Company to enter the market in Indonesia (see appendix 3.3.1).

3.3.2. Food Culture.

Food diversity is one of the biggest impacts within Indonesia‘s lifestyle. With a huge amount

of diverse ethnicity in Indonesia and that their cuisine is very tasty, rice and chilli is a must

for every main dish that need to be on the table for most meals including breakfast (SBS

2013). Because of this reason, the Alana‘s Company could also increase their brand

awareness to the whole community in Indonesia. As a result, this could be an opportunity for

Alana to export their product to Indonesia (see appendix 3.3.2).

3.3.3. Tourism.

The number of foreigners coming in to Indonesia in increasing rapidly, with a total of about

626,100, a 2.96% rising from 609,093 tourists in the same period (Global Travel Industry

News 2012). Because of this reason, Alana‘s Company will be increasing their brand

awareness within the foreigners who coming to Indonesia for trying Indonesian‘s food with

the Alana‘s sauce as the ingredients. As a result, this demonstrates an opportunity for Alana‘s

Company for introducing their product to Indonesia (see appendix 3.3.3).

3.3.4. Hofstede Cultural Dimension.

There are some Hosfstede‘s cultural dimension that could help the Alana‘s Company to

manage their product for entering the market to Indonesia. Firstly, Collectivism VsIndividualism is defined as a society's position that reflects whether people‘s self -image is

defined in terms of ―I‖ or ―we.‖ (Hosfstede 2013). Secondly, Power Distance is defined as

expresses the degree to which the less powerful members of a society accept and expect that

power is distributed unequally (Hofstede 2013). Thirdly, Uncertainty is defined as expresses

the degree to which the members of a society feel uncomfortable with uncertainty and

ambiguity (Hofstede 2013). Forthly, Time Orientation is defined as planning and setting

objectives to achieve goals. Fiftly, Femininity Vs Masculinity is defined as how societies in a

certain country choose to follow rules lead by more man or woman. Sixtly, Pragmatism is



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Source: Hosfstede 2013.

3.4. Technological Environment.

3.4.1. Transportation Infrastructure.

Indonesia has a poor quality of technological infrastructures are relating to the lack of

transportation infrastructure (State Library 2013), bad quality of road infrastructure (World

Bank 2013),and also poor quality of railway infrastructure (Indonesia Shipping Report 2012)

for eksporting the product to Indonesia. As a result, most of the eksporter who eksporting the

product from overseas will be delayed due to the bad quality of the roadway system. Because

of this reason, the roadway infrastructure and the railway system become insufficient

infrastructure for eksporting the product to Indonesia, which demonstrates a threat for

Alana‘s Company to enter the market in Indonesia. On the other hand, Indonesia has a highquality of air transport infrastructures (World Bank 2013). As a result, most of the importers

use the air port infrastructures for shipping their product from another countriest. Because of

the reason, the air port infrastructure become the most effiency, quicker and also timely for

eksporting the product, that present a good opportunities for Alana‘s Company to introduce

their product in Indonesia (see appendix 3.4.1).

3.4.2. Telecommunications and Infrastructure.

Indonesia has a high-advanced quality communication technology are relating to the good

quality of Internet infrastructure (CitizenLab 2013) and high quality of cellular phone

infrastructure (CitizenLab 2013). Because of the high quality telecommunications

infrastructure, it is easier for the importers and eksporters to connect with each other. In

addition, the distributors are also impacted by the good quality of telecommunications

infrastructure because it is quicker for the distributors to connect with each other that will be

a good opportunities for Alana‘s Company to import their product to Indonesia (see appendix

3.4.2).

3.4.3. E-Commerce.

Indonesia has a high quality of the internet infrastructure lead to the growing stages of the

social media such as Facebook and Twitter as the good potential E-commerce in 2012 (Daily

Social 2012). Because of this reason, Alana‘s Company will be increasing their sales of

product by selling the product via online and distributing the product through the social

media. This demonstrates that a high quality of the social media will be an opportunities for

the Alana‘s Company to eksport their product to Indonesia (see appendix 3.4.3).



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3.5. Environmental.

3.5.1. Recycled products.

Indonesia has started their own recycling business such as Dallang Collection to recycle the

plastic product (Reduce, Reuse and Recycle in Indonesia 2010). Because of this reason,

Alana‘s Company should be aware of making their product with the glass materials for

introducing their product to Indonesia. As a result, This shows a threat to Alana‘s Company

for entering the market to Indonesia (see appendix 3.5.1).

3.6. Legal Environment.

3.6.1. Consumer Protection Law

Indonesia has a restricted requirement for importing the product from overseas to protect and

improving the health of society in terms of food safety and also good quality of nutrition

(Food and Agricultural Standards 2013). Because of this reason, Indonesia required some

registration process that should be conducted by a local agent or importers (Food and

Agricultural Standards 2013). There some standards form that importers must follow such as:

For product produced under license, the Indonesian company's license and a letter of

reference from the overseas factory (Food and Agricultural Standards 2013).

For imported products, a reference letter from the overseas factory, a health certificate

and a radiation-free certificate in accordance with existing law (Food and Agricultural

Standards 2013).

As a result, Alana‘s Company must follow Indonesia‘s import regulations for exporting their

product to Indonesia. This demostrates a for Alana‘s Company to export their product to

Indonesia (see appendix 3.6.1).

3.3.2 Labelling and Packaging Law.

In 2012, Indonesia has a strict legal laws. These strict legal laws are relating to the strict

labelling and packaging food laws (Clark and Nielsen 2013). As a result, Alana‘s Company

should be aware for eksporting their product to Indonesia due to the strict labelling and

packaging food laws. This present that a strict labbeling and packaging food laws will be a

threat for Alana‘s Company for entering the market in Indonesia. The examples of rules and

regulations of the labelling and packaging could be seen in the appendix (3.6.2).



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3.3.3. Corporate Tax.

Indonesia has a high corporate tax rate around 25% (Urbach Hawker Young 2014). Because

of that reason, Alana‘s Company must pay a high tax for eksporting the product to Indonesia.

This shows a threat for Alana‘s Company to introduce the product to Indonesia (see appendix

3.6.3).

4.0. SWOT Analysis.

Strength.

From the company itself, Alana has quite a good deal of strengths that are shown in regards

to start her idea in selling her sauce in Indonesia.

• The taste of Alana‘s sauce comes from different cultures around the world.

• A good start of for Alana, as Indonesia‘s cuisine also has many different taste of food

from various ethnicities within Indonesia itself. The table also states that it is 100%

Australian made and halal, meaning anyone can have a try on the sauce.

• Lastly, Alana sauce range from mild to very hot, so there are options for people who

can‘t stand to eat very hot sauces.

• Alana‘s Company exporting the BBQ sauces, which will be strenghts for the Alana‘s

Company to increase the sales of their product.

Through the description above, this could upsurge Alana‘s brand awareness and establish

brand loyalty in Indonesia.

Weaknesses.

There are some weaknesses within the Alana‘s Company such as:

• Alana‘s sauce is only sold at Coles supermarket, where not a whole lot of customers

would have the advantage in trying the new sauce.

• According to the Alana‘s Company website, Alana‘s Company does not have any

specific goals

• Moreover, Alana‘s sauce is not yet well known throughout Australia which this

relates to a decrease in product awareness.

• Alana‘s company does not have any experience on exporting products to foreign

county, which means that they should consider a good strategy for exporting their

product efficiently.



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By lacking short and long term goals, will reduce the brand awareness for Alana‘s company

because they do not have a proper focus achievement of where the company would be in the

future.

Opportunities.

Based on the PESTEL research in Indonesia, it is described that Alana has a decent

opportunity factors is has very many nice people and their food is also compatible with

Alana‘s taste of sauce.

• A stable political government and a good relationship with other countries represent a

good opportunities for Alana‘s Company to introduce their sauces to Indonesia.

• A high GDP rate demonstrates a good opportunities for Alana‘s Company for

increasing the sales of their product.

• A high- advanced of telecommunications infrastructure also is the good opportunities

for Alana‘s Company to communicate with distributors channels in Indonesia. In

addition, a high quality of air transport infrastructure provides a great opportunity for

the Alana‘s Company for shipping their product to Indonesia.

• Lastly, in recent times, Indonesia has started to familiarize with the idea ofreduce,

reuse and recycle trend. They are keen in looking at reusing old or second hand

products.

As of the above justification, this provides a possibility of a great upward proportion of

Alana‘s brand awareness and can be known throughout most part of Indonesia.

Threats.

However, Alana also needs to consider Indonesia‘s threats as they might effect on the process

of exporting her sauce into Indonesia.

Corruption and also the public disorders are the major deal in Indonesia and it is still

hard to arrange for solutions to decrease its high level of corruption and public

disorder. As a result, Alana‘s Company should be increasing their awareness for

entering the new market in Indonesia.

Alana should also have a think through about 25% tax rate and also unstable exchange

rate, which is high for Alana‘s Company for selling their sauces to Indonesia.



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Indonesia have not yet be able to solve any solution regarding its poor railway system

and road infrastructure, which could make it hard for Alana‘s company for shipping

their product through the on-ground transportation.

Another important thing is that a Indonesia has a strict regulations of packaging andlabelling laws in Indonesia represents Alana‘s Comapny should be aware about the

ingredients of the sauces that could have a huge impact on the customers in Indonesia.

From the explanation above, it is impossible to implement a cheap price where all

communities are able to purchase the product.

5.0. Competitive Audit.



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6.0. Marketing objectives.

Short term Objectives (less than one year).

Survival strategy.

Open new store in Capital city of Indonesia called Jakarta between middle to end of 2015.

Increase brand awareness in Jakarta, Indonesia by 10% by the end of 2016.

Sustain Alana‘s sauce brand in capital city (Jakarta, Indonesia).

Long term Objectives (two to three years).

Growth strategy.

Increase brand awareness in Jakarta by more or equal to 20% by the end of 2016.

Increase market share by more or equal to 5% by the end of 2016.

Increase overall sales by more or equal to 10% by the end of 2016.

Increase brand awareness by more or equal to 50% by the end of 2017.

7.0. Segmentation Profile/ Identification of Consumer.

According to Babin and Harris (2011) target market is the understanding and identification of

segments of a market to achieve their goals. Market segmentation could differentiate into groups

based on the different demand curves. The figure 1.0 below identified targeted markets from

Alana‘s Sauce in Australia that will be divided according to the Demographic, Geographic,

Psychographic, and Socioeconomic, such as:

Figure 1.0. Target market of Alana’s sauce.

University Student House wife Expatriate

Geographic Business district area

Surounding Suburbs

City Business District Area

Surounding Suburb

Business district area

Surounding Suburb

Demographic Ages 17-27 Years old.

Student, part time, casualworker

Mid to high incomeearners.

Average income of AU$around 20,000 to 40,000annually.

Medium to high socialstatus.

Ages 25- 60 Years old.

House wife.

Medium to high incomeearner.


All social classes.

Ages 25 - 55 Years old.

Tourist, immigrants, ,shoppers

Mid to high incomeearners.


Medium-high social status.

Diverse ethnic.



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Psychographic AdventurousTime restrictedCuriousConvenience seekers

Self-satisfactionsSelectiveCuriousHealthyAttractive

Convenience seekersEnjoyment CautiousEfficientHomesicknessSelective

Behavioral High usage rate and brandloyalty

Moderately price sensitive

High usual rate and brandloyalty

Moderate price sensitivity

High usage rate and brandloyalty

Low price sensitivity

Benefits Desired product benefits:- Convenience seekers- Instant food enjoyment

Desired product benefits:- Enjoyment of newflavor.

Desired product benefits:- Homesick reliefsensation.

Targeted Market 1 – University Student.

The majority of customers who purchase Alana‘s BBQ sauce are university student. The reasons

are those groups are looking for the fast and convenience food due to their limited time and

curiosity towards food. In this segment the consumer are Medium to high social status with the

age around 17- 27 Years old. The average is around AU$ 20,000 - 40,000 annually. The benefit

for this segment is the convenience and instant food enjoyment.

Targeted Market 2 – Housewife.

The second target customers who purchase Alana‘s BBQ sauce are housewife, these people have

high selective products due to self-satisfaction towards the meals that they going to cook and the

healthiness. In this segment the consumer are Medium to high social status with the age around 25

- 60 Years old. The average is around AU$ 20,000 to 30,000 annually. The benefit for this

segment is the Enjoyment and experience of new flavor.

Target 3 – Expatriate.

The last target customers who purchase Alana‘s BBQ sauce are expatriate, immigrants, and

tourist who live or visiting Jakarta for business or vacations. In this market segment, consumer

has high expectation of enjoyment cautions, convenience seekers, and homesickness feeling

towards food. In addition, consumer is classified as medium to high social status with the age

around 25 - 55 Years old and the average income is around AU$ 55,000 to 70,000 annually. The

benefit for this segment is the relief feeling oh homesick sensation towards craving of food.



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8.0. Marketing Mix Strategies.

8.1 Placement (Distribution)

Distribution is the physical flow of goods, through distribution channel which is ―an organized

network of agencies that combine to link producers with users or consumers‖ (Fletcher andCrawford 2011). Some strategies that will be undertaken to enter Indonesia market in the

distribution phase are market entry strategy and store location.

8.1.1 Market Entry Strategy.

It is really important to consider the market entry strategy while entering a new overseas market.

There are several things to consider such as culture, government and legal constraints,

commercial and environmental constraints (Fletcher and Crawford 2012). Therefore, Alana‘s

need to implement a distribution channels markets strategy. In this strategy Alana could use

logistics agent such as CCI and FPS global shipping and forwarding, the reason is to facilitate

them in order to enter into Indonesia market. The benefits of these agents are Alana Company

does not have to concern much about the regulation to enter Indonesia market (fletcher et al.

2014, 534). This strategy will be implemented in October 2015 until December 2015 and it will

be evaluated by consultant agency, distribution department and retailer personnel.

8.1.2. Store Location.

As mentioned before, Alana‘s will open their store in Jakarta. The reason is Jakarta has already

known as the capital city of Indonesia, one of the largest population region in Indonesia and in

Jakarta could be found that there are 132 shopping center, 432 supermarkets which included

hyper marts, retail centers, traditional markets and shopping districts (Wiriyatmoko 2012). It is

suggested that Alana‘s opens their first shop in one of the famous supermarkets in Jakarta, where

all the brands goes in called ―Ranch Market‖, this supermarket located inside Grand Indonesia

Shopping Mall where classified as one of the famous shopping mall in Jakarta or mid-high class

shopping mall. Beside that in this shops include many exclusive international and Indonesian

brands (Grand Indonesia 2012). Another reason are ―Ranch Market ―has a good reputation and

the competitiveness in term of service, quality, food safety and cleanliness and a general image of

modernity which attract shoppers to choose modern supermarket (Sutanto Vanessa 2014). This

store location will be implemented in October 2015 until December 2015 and evaluated by

consultant agency, distribution department and retailer personnel.

8.2. Product.

Product is a final result of the manufacturing process, such as physical goods, services or

symbolic that to be offered to the marketplace to satisfy customer needs or wants (Fletcher and



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Crawford 2012). There are some factors and decisions that have to be considered when placing a

product into a market, in term of product design, product quality, product features, and product

branding (Learn marketing. 2013). Furthermore, due to the differences in business environments,

sometimes modifications to the product are required when entering a new market (Fletcher and

Crawford 2012). Due to the fact above, Alana‘s need to undertake some strategy such as new

product development, Packaging, diffusion of the new products, and Quality Regulation, due to

having a good national image, however the changing depend on the customer feedback.

8.2.1 New Product Development.

According to Rajan (2013), there is four stage of the new products development; idea generation,

Feature development, product development, product testing .As Alana‘s expand their market

internationally, the new product development are one of the best strategy, where company is able

to build and evaluate the products beside that company can be successfully used in the stage of

product testing to estimate the interest in various product combinations and especially in running

market simulations. In addition Alana‘ s sauce could able put as a middle to high brand position in

Indonesia. The product development strategy will be implemented January 2016 until March 2016

and will be evaluated by research and product development division of Alana‘s.

8.2.2. Packaging, diffusion of the new products.

Recently, many consumers see the products from its packaging (Collins Robert. 2013). So it

becomes a major concern that businesses are required to have great design, in order to attract the

new customers. Therefore, Alana‘s need to adopt several ways of packaging and labeling in

Indonesia term and regulations such as:

Products have been offered in smaller or simple packs. Alana should make the product

smaller than previously so that the price offered can be cheaper.

Alana can make the product looks like Indonesian tradition model to gained popularity

and reputation that are ―simple‖, therefore the rate of attractiveness increases.

Provide ‗economy packs‘ where Alana can offer products like buy three get one free, the

purpose of this is to target customer who earned low income

Revealed of halal logo on their labeling products, due to Indonesia is a Muslim country.

The packaging diffusion of new product will be implemented in March until June 2016 and will

be evaluated by research and product development division of Alana‘s.

8.2.3. Quality Regulation.

In order to be successful in long-term marketing products internationally (Logomasini Angela.

2008), sustaining reputation by regulating quality is necessary. Alana‘s need to checks regularly



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for the quality of the products and keeps the best stuff to produce the products in order to have

stable taste and quality. According to the Alana‘s official website, most of the raw materials is

high quality and the selectiveness of raw materials become the crucial factor. Thus, the rule of

quality is critical to make sure that the company always provides great products and services. The

quality regulation will be implemented in March, June, and September 2016, the evaluation will

be conducted by research and product development division of Alana‘s.

8.3 Price.

According to Fletcher and Crawford (2012), pricing in international marketing can be more

complex than domestic pricing, because of the larger number of variables are involved and rate of

uncertainty. Therefore, when setting up the Price, Alana‘s needs to be aware and consider all the

pricing strategy they will use in marketing towards their product to the consumer. The prices for

the products would definitely affect the entire company, so pricing can cause a big failure if the

company sets the price wrong. Some of strategies that will be used by Alana‘s are;

8.3.1. Market Based Strategy.

As Alan‘s expand their market internationally, the market-based strategies which known as

competition-based strategy, this strategy become a good strategy because the company will

evaluate the prices of similar products that are on the market and sets the price higher or lower

than the competitor pricing (Leigh Anthony 2014). The initial price that will be placed start from

Rp. 50,000 until Rp. 55,000. The initial price above is classified, as a normal price for product

middle to high, so the sales will be generates and Alana‘s will get brand awareness in Indonesia

market. The market-based strategies will be implemented from January until June 2016 and will

be evaluated by marketing sales department and accountant.

8.3.2. Price Differentials.

As a multicultural country, Indonesia have a lot of event in each year. Thus Alana‘s could use

price differential strategy to increase their profit and awareness. Some example from this strategy

are charging lower prices for high-profile products to capture customers‘ awareness and charging

different prices at different times of the day, week or year to reflect changing demand or the

changing value to customers of your product. (Machlup Fritz. 2012). The price differential

strategies will be implemented from April until December 2016 and will be evaluated by

marketing sales department and accountant.

8.3.3. Discount Carefully.

Last strategy for pricing is called discount carefully. This strategy will affect the business profits

and retailers. Discounting can be worthwhile in certain circumstances, For instance, clearance



19

discounts can help you to sell off old stock, encourage customers to try a new product, and release

working capital and improve your cash flow (Lomax Alyce. 2010). However this strategy may

create the wrong image for your product or generate sales that are not repeated when the discount

is removed. These discounts can also cause resentment among current customers (Campbell

Patrick. 2013). Thus, business needs to be smart to undertake this strategy to prevent negative

images, for example the discount that will be apply around 10% to 15%. The discount carefully

strategies will be implemented from August until December 2016 and will be evaluated by

marketing sales department and accountant.

8.4 Promotions.

According to Fletcher and Crawford (2012), promotion can be defined as major form of

communication in business to let audience learn about the products and services through

communication process. Some strategies that will be using as promotion strategy are;

8.4.1. Marketing Source Delivered via Mass Media.

This is where Alana‘s company will use advertising tools to approaching both existing and

potential customers (Delaney et.all 2004). In this strategy, Alana‘s sauce is going to use personal

mailing list that customer can sign up to, and received the latest news and the discounts vouchers,

if the customers are purchasing the service within the given period of time. Also company could

use some free social media such as twitter, Facebook, and Instagram to promote, inform and

update the latest news about Alana‘s products goods and services.

The Marketing Source Delivered via Mass Media strategy will be implemented from June until

December 2016 and will be evaluated by marketing division and advertising department of

Alana‘s.

8.4.2. Marketing Source Delivered Personally.

This is where salespeople and customer service representation of Alana‘s that personally delivers

the information (Delaney et.all 2004). In this strategy, company using a direct phone and free

taste meal in the supermarket. Since Alana‘s sauce primary targeted markets are people who live

in capital city, where most of Indonesian people like to cook, it is become a big opportunity for

Alana‘s company. In addition these strategies could attract the awareness of customers and the

advertising cost is low. The Marketing Source Delivered Personally strategy will be implemented

in first quarter and fourth quarter in 2016. The activity will be evaluated by marketing division

and advertising department of Alana‘s.

8.4.3. Non-marketing Resources Delivered Personally.



20

This is where the customers heard about Alana‘s sauce from non-marketing source (Delaney et.all

2004). Some examples from this strategy are Alana‘s blog and reviews from Alana‘s website.

This can be classified as consumer behaviour as a word of mouth which influence delivered

verbally from one person to another, for example: friends, family, co-workers or groups of people

who has a pleasant experience with Alana‘s products before and giving their recommendation to

others. The positive word of mouth would lead to increase in customer attractiveness towards the

sauce. The word of mouth strategy is good strategy to attract more customers and increase the

profit.

The Non-marketing Resources Delivered Personally strategy will be implemented from June until

December 2016 and will be evaluated by marketing division and advertising department of

Alana‘s

9.0 Implementation and Evaluation Chart.

9.1 Implementation Chart.

2015 2016

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Place

Market EntryStrategy.

Store Location

Product New ProductDevelopment

Packaging,diffusion of thenew products

Quality Regulation

Price

Market basedstrategy.

Price Differentials.

Discount carefully.

PromotionMarketing SourceDelivered via MassMedia

Marketing SourceDeliveredPersonally

Non-marketingResourcesDeliveredPersonally



21

9.2 Evaluation Chart

2015 2016

How 4th

Quarter

1st

Quarter

2nd

Quarter

3rd

Quarter 4th

Quarter

Who?

Place

Market EntryStrategy.

Conduct a survey andchoose the best agent ordistributor towards theopening new shop inIndonesia.

Consultant,DistributionDepartment, RetailPersonal.

Store Location

Product

New ProductDevelopment

Conduct a survey todetermine thesatisfaction ofcustomers towards the

product

Research and productDevelopment.Packaging, diffusion

of the new products

Quality Regulation Regular checking forthe product and raw

material quality.Price

Market basedstrategy.

Conduct a survey,calculation, andconsideration towardsthe undertaking pricestrategy, and measurethe changes in sales.

Market SalesDepartment,Accountant.Price Differentials.

Discount carefully.

Promotion

Marketing SourceDelivered via MassMedia

Create a private socialmedia and survey the

people rating or like in

Alana‘s page, lookingfor representative toconducting free tastingin ―Ranch Market‖.

MarketingDivision,Advertising

department.Marketing SourceDelivered Personally

Non-marketingResources DeliveredPersonally

10.0. Conclusion

In conclusion, Alana‘s is a new established company in Australia, who will be entering their

products to Indonesia market. The reason of introducing to Indonesia market is due to Indonesia

does have much BBQ sauces, so it will be a good opportunities for Alana‘s Company to enter

the market in Indonesia. Furthermore, threats and weakness also need to be considered by the

business for entering the market in Indonesia. In this report, the Specific, Measurable,

Attainable, Realistic, and also Timely (SMART) ob jectives and the marketing strategy (4P‘s)

such as Product, Place, Promotion, and Price has been set up to survive within the Indonesia‘s

market.



22

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indonesia-economic-partnership-agreement.

Bank Indonesia. 2014. Accessed April 08. http://www.bi.go.id/en/moneter/inflasi/biinflasi/Contents/Penetapan.aspx.

\

Bmag.2013.Alana‘s Pantry – What will you find.http://bmag.com.au/food-drink/food-news/2013/10/16/whats-alanas-

pantry.Babin, Barry and Eric G. Harris. 2011. CB3. Student Edition. South-Western, USA:Cengage

Learning.

Campbell Patrick. 2013. How Discounting is Killing Your Pricing Strategy.http://blog.priceintelligently.com/blog/

bid/170106/How-Discounting-is- Killing-Your-Pricing-Strategy

Citizen Lab. 2013. An Overview of Indonesian Internet Infrastructure andGovernance.https://citizenlab.org/2013

/10/igf-2013-an-overview-of-indonesian-internet-infrastructure-and-governance/.

Clark Mitzi Ng and Catherine R. Nielsen. 2013. ―The Regulation of Food Packaging In The Pacific Rim.‖ Packaging

Law, September 2013.

Corruption Perception Index. 2013. ―Transparency: Corruption Perception Index‖. Accessed April 12,

http://www.transparency.org/cpi2012/results.

Country Repost. 2014. Glossary: Inter-Governmental Group on Indonesia (IGGI): Country Repost.

Countries and their Cultures. Indonesia. 2014. Accessed 21 May 2014.http://www.everyculture.com/Ge-It/Indonesia.html.

Collins Robert. 2013. Package Development Guidance for New Product Entrepreneurs. http://gpopt.com/packaging-

white-papers/package-development-guidance-for-new-product-entrepreneurs

Currency. 2014. Accessed April 20, http://www.currency.me.uk/convert/idr/aud.

Document Reference. Government. 2014. Accessed April 06.http://www.spring.gov.sg

/archives/ETAC/Documents/Indonesia.pdf.

http://www.alanaspantry.com.au/about





23

Delaney Amanda, B Lough, and M Whelan. 2004. A review of Mass MediaCampaign.http://www.

monash.edu.au/miri/research/ reports/muarc220.pdf.

Demotix. 2010. Reduce, Reuse and Recycle in Indonesia. 23 February 2010.http://www.demotix.com/news/258958

/reduce-reuse-and-recycle-indonesia#media-258942.

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Agreement negotiations. Department of Foreign Affairs and Trade.

Department of Foreign Affairs and Trade. 2014. Indonesia Country Brief: Political Overview. Department of Foreign

Affairs and Trade.

Elkhweet Inader, Mike Booker and Jean-Pierre Felenbok. 2013. ―Indonesia Shopper Report‖.

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Fletcher, Richard and Heather Crawford. 2011. International Marketing an Asia-Pacific Perspective. 5th ed. Frenchs

Forest, NSW: Pearson Australia.

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Pearson Australia.

Food and lifestyle.2014.http://stylemagazines.com.au/food/alanas-pantry-spicy-sauces.

Food and Agricultural Import Regulations and Standards.2013. http://www.puntofocal.gov.ar/notific_otros_

miembros/idn84_t.pdf.

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http://www.eturbonews.com/29560/number-foreigners-coming-indonesia-keeps-growing.

Grand Indonesia 2012. Jakarta Mall and Shopping Center. http://www.jakarta-tourism.go.id/blog/en/27/jakarta-an-

infinite-paradise-for-shopping-getaways.

Hastarika, Gita. 2014. Reduce, Reuse, Recycle: A Trend Kicks Off in Indonesia.Accessed May 10 2014.

http://www.thejakartaglobe.com/features/reduce-reuse-recycle-a-trend-kicks-off-in-indonesia/.

Husna, Farida and Andreas Ismar. 2013. ―Indonesia Raises Interest Rates.‖

Indonesia Information Technology Report. 2012.http://search.proquest.com.dbgw.lis.curtin.edu.au/docview

/1037122984/BFAC%20EF4714164466PQ/6?accountid=10382#.



24

Indonesia Shipping Report. 2012.http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/1023470509

/6E6A2505124547D5PQ/10?accountid=10382#.

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Khusanjanova, Jamola. 2011. ―OPEC‘s Benefit for the Member Countries.‖ Sciedu Journal.

Doi:10.5430/rwe.v2n1p14

Lomax Alyce. 2010. Pricing Strategy. http://www.netmba.com/marketing/pricing

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recipes.http://www.pinterest.com/alanalowes/alanas-pantry-spicy-sauce.

Leigh Anthony.2014.What Is a Market-Based Pricing Strategy.http://smallbusiness.chron.com/market-based-pricing-

strategy-5121.html

Logomasini Angela.2008. Food Quality Protect Act.http://cei.org/sites/default/files/Angela%20Logomasini%20-

%20Food%20Quality%20Protection%20Act.pdf

Machlup Fritz. 2012. Characteristics and types of price decimations. http://www.nber.org/chapters/c0971.pdf

Money Conventer. 2014. Accessed April 17. http://themoneyconverter.com/AUD/IDR.aspx.

Organisation of Islamic Conference. 2014. Accessed April 21, http://www.oic-cert.net/v1/index.html.

Organisation of The Petroleum Exporting Countries. 2014. Accessed April 22,

http://www.opec.org/opec_web/en/about_us/25.html.

OSAC (Overseas Security Advisory Council). 2013. Indonesia Crime and Safety Report: Jakarta.

https://www.osac.gov/pages/ContentReportDetails.aspx?cid=13578.

Parliament of Australia. 2014. Indonesia‘s 2014 national elections: a quick guide: National political parties and

current seats in DPR: Parliament of Australia.

Prasetyo and RirinYuliatiningsih. BANK INDONESIA-CONSUMER SURVEY. http://www.oecd.org/std/leading-

indicators/43813366.pdf.

Prime Minister of Australia. 2013. Building An Indonesia-Australia Relationship For The 21st Century: Prime

Minister of Australia.



25

Presidential Power. 2014. Accessed April 01, http://presidential-power.com/?p=643.Sambijantoro, Satria. 2014.

―Bank Indonesia urged to keep interest rates high.‖ Jakarta Post, February 07.

Rajan. 2013. New Product Development. http://www.learnmarketing.net/npd.htm

Sutanto Vanessa 2014. Ranch Market Grand Indonesia, Jakarta‘s gourmet supermarket.

http://www.theclosetchef.net/ranch-market-gi.

Santander Trade. 2014. Accessed April 09, https://en.santandertrade.com/international-

shipments/indonesia/packaging-and-standards.

Salary Explorer. Salary Survey in Jakarta. Accessed May 22, 2014. http://www.salaryexplorer.com/salary-

survey.php?loc=1136&loctype=3.

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indonesian-food.

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/890636/pdf_001/business_infrastructure.pdf.

Tapsell, Ross. 2014. Australia Needs Indonesia More Than it Need Us. ―The Guardian, May 07.

The hofstede Centre. http://geert-hofstede.com/australia.html.

Trading Economics. 2014. Accessed April 20, http://www.tradingeconomics.com/indonesia/gdp.

United Nations Interim Force in Lebanon. 2014. Accessed April 05,http://unifil.unmissions.org/Default.aspx?ctl=

Details&tabid=11552&mid=15105&ItemID=19761.

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Indonesia.pdf.

Utoyo Naning and Ramda Y. e-commerce in Indonesia.2012. http://api.dailysocial.net/en/wpcontent

/uploads/2012/08/eCommerce-in-Indonesia.pdf.

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26

World Bank. 2013. Accessed April23,http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIA

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11.0. Appendix.

Appendix 3.1.1. Government Relations.

Firstly, Indonesia and Australia have a bilateral relationship in terms of business, education, defence, security and people-to-people links

(Prime Minister Australia 2013). In addition, Australia and Indonesia also cooperate in multilateral forums such as the East Asia Summit,

the G20 and APEC. As a result, Australia and Indonesia have a long-term development partnership (Prime Minister Australia 2013).

Secondly, The agreement is Indonesia's first bilateral free trade deal and exempts Indonesia from 90% of Japanese import duties (Asia

Regional Integration Center). In addition, Indonesia and Australia also have a Comprehensive Economic Partnership Agreement (IA-CEPA)

for expanding the trade, investment and economic cooperation relationship between Australia and Indonesia (Department of Foreign Affairs

and Trade 2014).

As a result, it will help bring the region's two largest economies closer together and will form a key part of Australia's regional economic

integration as part of the Asian Century (Department of Foreign Affairs and Trade 2014).

Thirdly, The Association of Southeast Asian Nations (ASEAN) was founded by Thailand, Malaysia, Singapore, and the Philippines in 1967.

Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN (Association of Southeast Asian Nations 2014).

Fourthly, In addition, Indonesia sees itself as a bridge-builder between the West and foreign policy views of the NAM and Group of 77 (G-

77) that are contrary to those of the United States (Globaledge 2012).

Fifthly, For instance, it refers to Indonesia has pursued a good relationship with Israel by participatingthe Middle East peace conference in

Annapolis in November 2007 (Organisation Islamic Conference 2014).

Sixtly, Indonesia has maintained a close relations with the particular countries such as United States, Western Europe, Australia, and Japan,

through the Intergovernmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have

provided substantial foreign economic assistance (Country Repost 2014).

Seventhly, The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement

in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, Venezuela (OPEC 2014). Furthermore, In

1961, Qatar also was a member of OPEC. Following that, Indonesia and Libya were also members in 1962(OPEC 2014) . Then, the United

Arab Emirates also joined OPEC in 1967 (OPEC 2014). Next, Algeria was a member in 1969 (Khusanjanova 2011).Nigeria also joined

OPEC in 1971(Khusanjanova 2011). Ecuador was a member in 1973 (Khusanjanova 2011). Gabon was a member in 1975 (Khusanjanova

2011). Lastly, Angola also joined OPEC in 2007 (Khusanjanova 2011). Finally, Indonesia was a member of the UN Interim Force in

Lebanon (UNIFIL) for encouraging the Muslim world to embrace globalization and technology for greater social and economic progress in

2006 (United Nations Interim Force in Lebanon 2014).

Currently, Australia spied on Indonesia and shared the information with the United States when the two countries were involved in a trade

dispute in February 2013 (The Daily Telegraph 2013). Australia Signals Directorate (ASD) was monitoring the conversation of the

Indonesian President, Susilo Bambang Yudhoyono, his wife and also included another Indonesia‘s government officials (The Daily

Telegraph 2013). In addition, Australia Signals Directorate (ASD) also sharing the information with an unnamed American law firm which



27

was representing Indonesia in the discussions and passed the information to the ‗United States‘ National Security Agency. In 2012,

document reveals that America and Australia share access to Indonesian telecommunications (The Daily Telegraph 2013).

Firstly, Australia has access to bulk data that collected from Indosat Telecommunications Company, which is one of largest

telecommunications networks in Indonesia. As a result, they also has access to the Indonesian‘s government officials in a

number of departments (Australian Broadcast Company 2013).

Secondly, Australia Signals Directorate (ASD) has also obtained 1.8m encrypted master keys from the Telkomsel

Telecommunications Network in Indonesia and collected all of the Information from the Indonesian‘s government

(Australian Broadcast Company 2013).

According to the 2013 bulletin from Canberra, Australia was also spying on a target in Afghanistan who was an American

citizen but it did not detail what action, if any, the NSA took after Australia shared the information with them (Sydney

Morning Herald 2013). The bulletin did not identify which trade dispute Indonesia was involved in that Australia was spying

on but the country has had a few dispute with America over the years (Sydney Morning Herald 2013). The disputes overclove cigarettes and shrimp were ongoing at the time of the surveillance (Sydney Morning Herald 2013). America bans the

sale of Indonesian clove cigarettes, a major export, which Indonesia objected to the World Trade Organization about saying

menthol cigarettes were similar and still allowed in America. Indonesia won the dispute with the WTO ruling the ban

violated international law (Sydney Morning Herald 2013).

In addition, the bulletin from Canberra also reported that the NSA and its Australian counterparts had worked together on a

surveillance operation covering a 2007 United Nations climate change conference in Indonesia (Sydney Morning Herald

2013). As a result, the report caused the Australian government considerable diplomatic embarrassment in November 2013

(Sydney Morning Herald 2013).

Because of this reason, the relationship between Indonesia and Australia has been marked by disagreements on a range of

issues, including human rights, terrorism and asylum seekers (The Daily Telegraph 2013). Recently, the relationship

between Indonesia and Australia has been strained due to an uncompromising and unilateral approach to asylum seeker

policy (The Daily Telegraph 2013). The poorly-consulted public pronouncements about boat buybacks, towing boats into

Indonesian waters, and paying intelligence agents were all interpreted as infringements of Indonesia‘s national sovereignty.

On the other hand, spying revelations only served to trigger a crisis already in the making (The Daily Telegraph 2013). As a

result, the relationship between Indonesia and Australia has reached a new low over the weekend included the latest

bombshell from the surveillance scandal involving a third country, the United States.

In Canberra on Tuesday, Prime Minister Tony Abbott defended his government‘s intelligence operations abroad, without

addressing the accusations regarding Indonesia (Asutralia Broadcast Company 2013). He said that ―Austr alia should not be

expected to apologize for the steps we take to protect our country now or in the past, any more than other governments

should be expected to apologize for the similar steps that they have taken,‖ Tony Abbott‘s unrepentant stance on Australia‘s

phone tapping activities clearly prioritises domestic politics over Australia‘s long-term security interests (Australia

Broadcast Company 2013). Because of this reason, Tony Abbott makes a political concession soon, which impacted the

relationship between the two countries in terms of long-term trust and cooperation between Indonesia and Australia.

These two countries are separated by only about 125 miles at their closest point, but there are some differences between

Indonesia and Australia (Australian Broadcast Company 2013). Firstly, Australia is a wealthy, and also Australia is the

progressive country with a majority of Christians (Australian Broadcast Company 2013). On the other hand, Indonesia is the



28

largerst Muslim-majority nation in the world and also Indonesia is a developing country with small but vocal radical Islamic

groups promoting jihad against the West (Australian Broadcast Company 2013). Furthermore, terrorist also attacks against

Australian tourists on the resort island of Bali, boats laden with asylum seekers trying to reach Australia, and even the

treatment of live imported Australian cattle in Indonesian slaughterhouses have all strained ties (Australian Broadcast

Company 2013). In conclusion, Indonesia and Australia have different histories, different ethnicities, and also different

political systems (Australian Broadcast Company 2013).

Secondly, the size of the Indonesian economy is lower compared to Australia, and the growth rates are double those of

Australia. Indonesia is a vibrant democracy and a regional superpower (Australian Broadcast Company 2013). It severed

dependence on the International Monetary Fund soon after the Asian Financial Crisis in 1997 and has been fastidiously

repaying loans to the World Bank as a matter of national pride (Australian Broadcast Company 2013). On the other hand,

Australian aid program is significant in some local areas and is genuinely appreciated following natural disasters, it

represents less than 0.01 percent of Indonesia‘s GDP (Australian Broadcast Company 2013).

Thirdly, Indonesia‘s international relations are primarily focused towards ASEAN and the economies of East Asia. On theother hand, Australia is much more reliant on Indonesia for our security and economic interests (Sydney Morning Herald

2013).

Fourthly, Indonesia will hold national elections next year in what has become a hard fought, tense and much anticipated

contest (Sydney Morning Herald 2013). The stakes are high. There is no political mileage to be gained by demonstrating

closer relations with Australia and President, Susilo Bambang Yudhoyono faces ongoing criticism for being too close to

Western powers (Sydney Morning Herald 2013).

Sixthly, the relationship between Indonesia and Australia is far more productive (Australian Broadcast Company 2013). For

example, it refers to the leaders from both countries have repeatedly called their relationship is the most important for their

respective countries (Australian Broadcast Company 2013). Australia is the largest donor of aid to Indonesia which was

$508 million in the past fiscal year. In addition, Indonesia is Australia‘s 13th-largest trading partner (Australian Broadcast

Company 2013). Australia is also the No. 1 international study destination for Indonesian university student s, and many

current and former cabinet officials such as the regular joint military exercises (Australian Broadcast Company 2013). In

addition, Indonesian and Australian governments deal with perceptions of Indonesia within the Australian population, there

will be very little interest among Australian population for studying the Indonesian language (Australian Broadcast

Company 2013).

As a result, the recall of the Indonesian ambassador came amid already heightened tensions over asylum seekers, mostly

from South Asia and the Middle East, who use Indonesia as a transit point to make the dangerous boat voyage to Australia.

Indonesia has been refused a request by Australia to take about 60 asylum seekers in a crippled boat in November 2013 (The

Daily Telegraph 2013). According to Alan Dupont, a professor of international security at the University of New South

Wales said that ‗Indonesia‘s intelligence service also used its embassies abroad to spy on its allies, including Australia, and

that it was unlikely that either country would stop‘ (The Daily Telegraph 2013).

Appendix 3.1.2. Corruption.

According to the Transparency Index of Corruption, Indonesia was ranked 114 with the score 32 which perceived a quite high level of

corruption compared to another countries (CORRUPTION PERCEPTIONS INDEX 2013).



30

police officer last week and attacking two police posts in mid-August as part of a plot targeting authorities in Solo (FoxNews, July 10,

2013).

In November, there were various armed attacks on police stations and officers in Papua, including a bomb found in Pasar Kliwon Police

Precinct, Surakarta. Fortunately, many of these attacks failed due to INP intervention (FoxNews, September 10, 2012).

Conflict

The men were suspected of being part of a larger group involved in robberies used to fund terrorist activities, mainly aimed at police

(FoxNews, September 10, 2012). They also were linked to terrorist group led by Santoso, which is on the police's most wanted list in Poso, a

flashpoint of terrorism in Central Sulawesi where a Muslim-Christian conflict killed at least 1,000 people from 1998 to 2002 (FoxNews,

September 10, 2012). Santoso is alleged to command eastern Indonesia mujahadeen. He is wanted for several attacks in Java and Poso in

Central Sulawesi province, where a Muslim-Christian conflict killed at least 1,000 people from 1998 to 2002 (FoxNews, September 10,

2012).

Thousands of people were killed in the Muslim-Christian conflict in those two eastern Indonesian towns from 1999 into the 2000s

(FoxNews, December 30, 2013). Currently, police had found the video that suspect Bayu Setiono as the part of the terrorist group who had

described their group as "underground" with no leader that planned to kill police and create a situation like in Ambon and Poso, for the sake

of upholding Islamic Sharia law and the establishment of a caliphate in Indonesia (FoxNews, December 30, 2013).

Kidnapping

There were several cases of kidnapping in Jakarta which had little impact on the expatriate community (Overseas Security Advisory Council

2013). These kidnappings were primarily cases involving Indonesians only and were typically financially motivated and the perpetrators

were familiar with the victim's family (Overseas Security Advisory Council 2013).

Crimes

Crime can be a problem in Indonesia, particularly in major urban centers like Jakarta and Surabaya. Jakarta has a population of

approximately 10,000,000 residents that including foreigners (Overseas Security Advisory Council 2013). In 2012, there were reported

12,999 violent crimes such as 132 murders, 85 rapes, 2,843 aggravated assaults, 8,526 burglaries, 1,630 thefts, and 7,340 vehicle thefts

(Overseas Security Advisory Council 2013).

Appendix 3.2.1. Inflation Rate

Based on the Bank Indonesia data, the inflation rate of Indonesia around 8.38 percent in 2013 which is quite high compared to 2012 (Bank

Indonesia 2014).



32

120-day exchange rate history for AUD to IDR

Source: Money Conventer 2014

On the other hand, the exchange rate for converting Indonesian Rupiah to Australian Dollar: 1 IDR = 0.00088 AUD (Currency 2014).

Source: Currency 2014

Appendix 3.2.3. Gross Domestic Product

The World Bank Group reported that ―The GDP value of Indonesia represents 1.42 percent of the world economy GDP in Indonesia.‖

(Trading economics 2014). In 2012, Indonesia GDP averaged 182.0 USD Billion and it was reaching an all time high of 878.0 USD Billion

in December of 2012 (World Bank 2014).

Figure 2.0 Indonesian GDP graph from 2008 - 2014.



33

Appendix 3.4.1. Lifestyle

Average and Median Monthly Salary Comparison in Jakarta

Maximum: 98,000,000 IDR

Average: 15,012,406 IDR

Median: 10,000,000 IDR

Minimum: 20,000 IDR

Source: Salary Survey in Jakarta

Characteristics of Respondent in Average from 2007 until August 2009

Source: Prasetyo and Yuliatiningsih

Percentage %

Gender Male 59.1Female 40.9

Spending per month Rp 1 million up to Rp.3 million 62.2Rp 3 million up to Rp.5 million 26.5above Rp.5 million 11.3.

Age 20-40 years old 57.441-60 years old 38.4Above 60 years old 4.2

Education

background

Senior High 48.9Under Degree 13.1Degree 32.8Post Degree 5.2

Total 4,676



34

Appendix 3.4.2. Food Culture

There are few basic ingredients that Indonesian often uses to make their meals tasty, these include adding shallots, ginger, galangal, pandan,

turmeric, lemongrass, tamarind and lime leaves. Lots of dried spices such as coriander seeds, cardamom pods, cinnamon quills, cumin seeds,

cloves and nutmeg are used every day in many dishes. Lastly, sweet soy sauce is one of the specialties of Indonesian cuisine.

With diverse food culture between ethnic groups in Indonesia, Alana‘s sauce panty will receive good res ult when she exports her sauce to

Indonesia, as she has globally invented a diverse taste from different cultures around the world, where some of her sauce has Asian flavours

in it.

Indonesia people like to cook rather than eating out as it is healthier and much cleaner. An authentic thick sauce like curry is the main dish

that Indonesians like to eat. Also Introducing BBQ sauce from Alana will have an opportunity for Indonesia to try on something new and try

to cook it at home with the family rather than having to eat out. Even though in terms of pricing, eating out and cooking at home does not

make a huge difference, but its more to having a hygienic food on the table by knowing every little ingredients put in the food.

Appendix 3.4.3. Tourism

Most Australian still set Bali as their major destination and also for other tourist from other countries, having 904,495 tourists, or 37.75%

from January to April 2012. Including Japan, China also is the biggest tourist that comes to Indonesia. Other than Bali, foreigners also

travel to East Kalimantan and North Sulawesi. Places in Indonesia that have the least amount of time spent is in Riau islands, North

Sumatra, South Kalimantan and Central Sulawesi. Additionally, besides Bali, Jakarta with 57.91% and Central Sulawesi with 73.73 has the

highest occupancy rate for hotel stay. Various ethnic cultures have influenced Indonesia‘s cuisine including Chinese, Middle Eastern, Indian

and Western (Countries and their Cultures 2014). Therefore, foreigners are able to find those types of cuisine in many Indonesian

restaurants. In addition, with Indonesia having to do such thing, foreigners have their own feeling of joy to have the opportunity to eat foods

from the country that they originally came from.

Appendix 3.4.4. Hofstede Dimension

Communication is very unique to collectivism. This has given the opportunity for Alana to export her product to Indonesia. They are

comfortable with communicating with those in the society and family, and sharing things, especially when it comes to food/sauces.

Knowing that food is one a thing that could easily bring people together, changing the atmosphere in a warm hearted surrounding, and

making these people be at their comfort zone and sharing with each other what they love to eat.

Having a high power distance may have a negative impact for Alana‘s sauce in expanding it into Indonesia. People in high dist ance

countries tend to believe that power and authority are facts of life and are expected to do as what they are told, disregard whether they agree

or not. Indonesia is known to have the most populated Muslim society, therefore exporting food products need to be looked at carefully. It

needs to be halal and safe from any harmful ingredients put in the sauce.

Indonesia scores just 3% less than Australia on 48% thus will include in a low preference of uncertainty avoidance. Therefore, it is shown,

both Indonesia and Australia has similar uncertainty avoidance. The availability of a strong preference in Indonesia toward the Javanese

culture of separation of internal self from external self. They tend not to show their exact feelings when they are upset. They will keep

smiling and be polite, no matter how angry they are inside. As a result they prefer to have direct communication with each other when

dealing with uncertain issues.

Unlike Australia, Indonesian people set their goals on a short term basis. This provides Alana‘s company to think through what the company

wants to achieve in a short time.

Indonesia has a low score of masculinity. Indonesia value their status at different levels in which they have certain position that an

individual hold, a concept known as outward appearance (gengsi).



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As described above, Indonesia has high pragmatism which means that Indonesian‘s are ab le to adapt and try on something new, particularly

on foods/sauces. Alana‘s sauce has a variety of authentic Asian flavors, and since Indonesia also has this various types of f ood differences, it

would make it possible for Alana to expand her sauce to Indonesia.

To be able to show that Indonesia is low in indulgence, act and behave in a pessimistic way, would provide a good starting point for Alana

to export her sauce to Indonesia. Indonesians are warm hearted people and are very welcome for new products to come. Typically withAlana‘s global taste sauce which has different Asian flavors that could be made into a nice meal for everyone to share.

Appendix 3.5.1. Transportation Infrastructure

Firstly, despite rapid infrastructure development in large urban areas, traffic congestion continues to hamper large cities like Jakarta,

Bandung, Medan, and Surabaya. The example of Public transport that can be found is bus, minibuses, and taxis, is commonly used despite

poor public transport facilities (World Bank 2013).

Highway structure inefficiencies tend to be more distinct inside Jakarta, the area that may be at the moment surrounding 17% connected

with Indonesia‘s full financial expansion. Targeted visitors inside Jakarta is now a number of the slowest inside Asian countries since

increasing numbers of people enter the actual taking in middle class and will have the funds for to purchase new cars and trucks along with bikes (State Library 2013).

The roadway system suffers from congestion, overloading, and distortions due to fuel subsidies. The underdeveloped road system also

suffering from persistent damage from flooding, rains and stagnant water continuously erode the ashpalt cover (State Library 2013).

Thirdly, Indonesia has four unconnected railway systems, one in Java, and three in Sumatra (World Bank 2013). The Java railway‘s core

passenger traffic is intercity with long distance services, such as Jakarta-Surabaya (820 km), and Jakarta-Yogyakarta (510 km); and medium

distance services, such as Jakarta-Bandung (180 km), and Jakarta-Cirebon (200 km).The freight traffic moved by the Java railway consists

mostly of petroleum fuel, fertilizer, cement, coal, and containers (World Bank 2013). The railway system suffers from lack of network

capacity, and limitations on train weight and dimension create inefficiencies in the system (State Library 2013). Capacity limitations bear

particularly heavily on rail freight operations and train paths for the movement of freight by rail are the first to be sacrificed as traffic

approaches system capacity (State Library 2013). Poor rail access to port terminals is another major issue and hits at the broader lack of

multi-modal transport systems in Indonesia (State Library 2013).

Lastly, The most important ports are Jakarta (TanjungPriok), Surabaya, Semarang and Cirebon in Java; Belawan, Pandang, and Panjangon

in Sumatra; Balikpapan, Banjarmasin, and Samarinda in Kalimantan; Ujung Pandang and Bitung in Sulawesi; Ambon in Maluku; and

Sorong in Irian Jaya (World Bank 2013). Poor port infrastructure contributes to lengthy delays and exorbitant costs for inter-island

distribution chains. It can take over a week for containers to move through the port in Jakarta (State Library 2013). This is the longest time

in Southeast Asia, and is an increase from the five days it took to move containers just a few years ago (Indonesia Shipping Report 2012).

The cost of shipping a 40-foot container from the Port of Pontianak in West Kalimantan‘s provincial capital to Jakarta is approximately

twice the cost of shipping one from Jakarta to the United States (State Library 2013). Inefficient port capacity and high domestic

transportation charges have increased shipping costs for nearly al l of Indonesia‘s products (State Library 2013).



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Source: World Economic Forum

On the other hand, Indonesia has a good quality of air transport infrastructure. Air transportation is quickly escalating; not only, pushed bythe insufficient water and land transportation communities, but simply because take a trip simply by atmosphere may be the speediest

strategy to bypass many states, many island destinations, and for many places, really the only choice (World Bank 2013).

Appendix 3.5.2. Telecommunications Infrastructure

Firstly, Internet penetration in Indonesia has increased since the beginning of the century from less than 1 percent in 2000 to just over 15

percent in 2011 (or roughly 45 million people) (CitizenLab 2013).

Secondly, Cellular phone penetration has increased at an exponential rate over the same period, from 1.72 to 115.20 cellular phone

subscriptions per 100 inhabitants (CitizenLab 2013). A 2011 market report found that 48 percent of users connect to the Internet through

mobile devices. Mobile phone subscription in Indonesia reached 290 million in 2012 because people frequently carry two or more devices

(CitizenLab 2013).

The Indonesian government aims to push mobile broadband penetration to 22 percent in 2013, higher than the 8 percent penetration target

for fixed broadband (CitizenLab 2013).

Indonesia possesses in excess of 3 hundred Online sites services (ISPs), thirty-five which very own network facilities. Firstly, PT Telkom

can be Indonesia‘s largest telecommunications company, along with 8. 6 mil fixed -wire-line shoppers, 18. two mil fixed-wireless shoppers,

and 107 mil cell shoppers adjusted 12 2012 (CitizenLab 2013). Secondly, PT Indosat can be Indonesia‘s second-largest cell owner, with

more as compared to fifty-five mil cell subscribers. Both equally PT Telkom and PT Indosat were in some measure privatized within the

mid-1990s. The government retains gives with the two firms, such as in excess of 50 per cent property regarding PT Telkom (CitizenLab

2013).



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Figure 1. Indonesian Internet penetration and mobile subscriptions per 100 inhabitants

Source: CitizenLab 2013

Appendix 3.5.3. E-Commerce

Many companies associate their product with the social media in Indonesia (Indonesia Shopper Report 2013). Indonesia is the most most

frequent and committed users of social media in the world (Indonesia Shopper Report 2013). In addition, most of the Young populations

with the median age of 28 years old tend to be an active users of the social media. As a result, Indonesia is the highly perceptive to digital

marketing for promoting their brand (Indonesia Shopper Report 2013).

Firstly, Indonesia is Twitter‘s number four market, which have 11.5 million users that covering 12% of total tweet globally in 2012 (E-

commerce Indonesia 2012). Indonesia is Twitter‘s number five market, which have 30 million of Twitter‘s and 500 million active users, and

there are more tweets sent from Jakarta than any other city in the world in 2013 (Indonesia Shopper Report 2013). As a result, they use

Twitter extensively to get more information about the products.

Secondly, Indonesia is Facebook‘s number four market that has 43 million users that covering 90% under age of 35 in 2012 (E-commerce

Indonesia 2012). . Furthermore, Indonesia has accounts for more than 60 million of Facebook‘s one billion members and is that network‘s

fourth most-active country in 2013 (Indonesia Shopper Report 2013). For example, it refers to Jakarta has more than seven million facebook

users, so Jakarta is the second-largest Facebook city in the world ( Indonesia Shopper Report 2013). Because of that reason, most of the

customers watch the champaigns of the brand on Facebook, so companies use Facebook for promoting their product.

Source: E-commerce Indonesia 2012

Thirdly, Youtube also is the one of the high growth entertainment platform which is used for increasing the brands of the product (Indonesia

Shopper Report 2013). As a result, companies use Youtube to advertise their product.

Appendix 3.5.1. Recycled Product

For the last three years, Indonesia has not gone very far with recycling, reducing and reusing waste to form new useful products. It has failed

to meet the consistency of doing those three strategies to be able to reduce a negative impact on environment. Recently, Indonesia is now at

the start of getting familiar with reduce, reuse and recycle trend. They are keen in looking at reusing old or second hand products such as

plastics. They recycle the plastic product for making a new product such as handbags and umbrellas (Hastarika 2014).



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Appendix 3.6.1. Consumer Protection Law

Food Act (UU No 7/1996)

The broad scope of the Food Act of 1996 can be seen in its preamble, which includes the

following statements:

Food is a basic need of mankind and fulfillment of that need is a basic right of all Indonesians (Food and Agricultural Standards

2013).

Food that is safe, of good quality, nutritious, diverse, and provided in adequate quantity is the primary condition that must be

achieved to provide a nutritional system protecting the health and improving the well being of society (Food and Agricultural

Standards 2013).

Food as a commercial commodity requires an honest and responsible trading system, so that sustenance is available within the

purchasing power of the society and the trade in food can play a role in national economic growth (Food and Agricultural

Standards 2013).

In March 2008 (HK.00.05.23.1455), BPOM released a regulation that stated all imported processed food, food raw materials, food additives,

processing aids, food ingredients, and others must obtain import approval from the head of BPOM for every shipment. This regulation re

enforces the registration of imported food for retail purpose (Food and Agricultural Standards 2013).

Product Registration

All imported processed food products must be registered by importer/distributor with BPOM except for:

Processed food with a shelf life of less than seven days at room temperature (Food and Agricultural Standards 2013).

Processed food in small quantities for use in registering with BPOM, scientific research, or personal consumption (Food and

Agricultural Standards 2013).

Imported processed food for donation purposes is no longer included in this exemption (Food and Agricultural Standards 2013). While the

regulation indicates that small quantities for personal consumption do not require registration, Customs officials decide the quantity

permissible and so even small quantities have been seized and subjected to approval procedures (Food and Agricultural Standards 2013).

Information required on the forms includes, but is not limited to, the following:

Form A - general information about the food, the name and address of the applicant and the factory or company (Food and


Form B - the composition and quality of the product and its packaging (Food and Agricultural Standards 2013).

Form C - the production process including method of cleaning the inner wrapping and closure (Food and Agricultural Standards

2013).

Form D - quality control and final inspection procedures (Food and Agricultural Standards 2013).

Form E - the documents and substan (Food and Agricultural Standards 2013).

Certificates required for the import of food products include:

BPOM Approval registration (Food and Agricultural Standards 2013).

Radiation-free certificate for specific food types (Food and Agricultural Standards 2013).

Islamic purity standards - "Halal" certificate (Food and Agricultural Standards 2013).

Health Certificate from country of origin (Food and Agricultural Standards 2013).

Irradiated Food certificate (Food and Agricultural Standards 2013).

Food Additive Analysis certificate (Food and Agricultural Standards 2013).



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Requirements for imported products:

Administrative Requirements

Importer Registration Number (API) or Trade Business License (SIUP) and audit results of distribution facilities (Food and


Letter of Appointment /Authorization from company of origin (Food and Agricultural Standards 2013). Health Certificate/Free Sale Certificate issued by the competent authority in the country of origin (Food and Agricultural

Standards 2013).

Technical Requirements

List of ingredients (Food and Agricultural Standards 2013)

Manufacturing process or certificate of GMP/HACCP/ISO22000 (Food and Agricultural Standards 2013).

Certificate of analysis of finished product (chemical and microbial contaminants, certain food additives, etc.) issued by

accredited laboratory (Food and Agricultural Standards 2013)

Information of shelf life (Food and Agricultural Standards 2013)

Information on production code (Food and Agricultural Standards 2013)

Label design (color) (Food and Agricultural Standards 2013)

Additional Requirements

Trademark Certificate (for product with TM and or ® logo on the label) (Food and Agricultural Standards 2013)

Product Certificate of Indonesia national Standard (SNI) (for SNI-mandatory products: mineral water, wheat flour, iodized salt,

cocoa powder and refined sugar) (Food and Agricultural Standards 2013)

Organic Certificate (for organic products) (Food and Agricultural Standards 2013)

Status on GMO-Free status (for products using soy, maize, potato, and tomato). Product derivatives which have undergone

multiple refining processes in high temperature such as fat or oil (including lecithin) do not need non GMO statement (Food and

Agricultural Standards 2013)

Statement on Food Irradiation (for irradiated products) (Food and Agricultural Standards 2013) Appointment Letters as Registered Importer for Alcoholic Beverages (Food and Agricultural Standards 2013)

Other scientific reference to support any claim in the label (Food and Agricultural Standards 2013)

Appendix 3.6.2. Packaging and Labelling Law

Packaging Food

Food packaging is regulated under Law 18/2012 in Indonesia. According to Law 18/2012 requires that ―the food supply be suffic ient, safe,

high quality, diverse, affordable, and not conflict with religion, beliefs, and culture.‖ (Clark and Nielsen 2013). It imposes a broad range of

pre-market and post-market controls to try to ensure food safety (Clark and Nielsen 2013). Indonesia's new Food Law defines "Food

Packaging" as "material used to enclose and/or wrap Food that is in contacts both directly as well as indirectly." (Clark and Nielsen 2013).

The use of foodstuff appearance which is detrimental to be able to human being well being or releases air-borne pollutants which might be

detrimental to be able to human being well being will be banned to some extent Six to eight, which often specifically deals with foodstuff

appearance (Clark and Nielsen 2013).

The National Agency of Drug and Food Control (BPOM) Regulation No. HK.03.1.23.07.11.6664 on Food Package Control includes lists of

permitted and prohibited food-contact materials (Clark and Nielsen 2013). The lists include adhesives, ceramic materials, polystyrene,

rubber and elastomers, glass, ion exchange resins, metal and metal alloys, paper and board materials, plastics, and coatings. The positive list

includes maximum migration limits (Clark and Nielsen 2013). A National Standard, SNI 7626.1, on testing food-contact substances

migrating from food packaging was issued in 2011 by the National Standardization Agency of Indonesia (BSI) (Clark and Nielsen 2013).



Labeling Food

Requirements for labeling of food products are broad in scope. At the end of 2003, the head of BPOM published guidelines food labeling to

implement Government Regulation No. 69/1999 on Label and Food Advertisement (Document Reference 2014).

All food packaged for sale must be labeled using:

• The Indonesian language (Santander Trade 2014)

• Roman text (Santander Trade 2014)

• Arabic numerals Writing that is firmly affixed and clear so as to be easily understood by the community (Santander Trade 2014)

Information on the package must include at the minimum:

• The name of the product (Santander Trade 2014)

• Net weight or net volume - using metric units (Santander Trade 2014)

• Name and address of the manufacturer or importer (Santander Trade 2014)

• Registration number (Santander Trade 2014)

• Composition or a list of ingredients (Santander Trade 2014)

• Date of expiry (Santander Trade 2014)

• Production date or production code (Santander Trade 2014)

The example of products that require for labeling:

• On products derived from swine: the words ―Contains pork‖ to be written in red 'universe medium corps 12' font and enclosed in

a red rectangle together with a drawing of a pig (Document Reference 2014).

• On sweetened condensed milk: the words ―Beware! Not suitable for babies‖ to be written in Indonesian in red 'universe medium

corps 8' font and enclosed in a red rectangle (Document Reference 2014).

• Alcoholic beverages must have ―Prohibited for use by people under 21 years or pregnant women‖ on the label (D ocument

Reference 2014).

• Irradiated packaged food must carry the words ―Irradiated food‖ the reason for irradiation and this logo(Document Reference

2014). Also required are the name and address of the radiation facility, the month and year of irradiation, and the country in

which the process was carried out. If the food can not be re-irradiated, then the label should include the word: ―Not to be re -

irradiated‖ (Document Reference 2014).

• Food derived from genetic engineering must have ―Genetically Engineered food‖ on the label (Document Reference 2014).

• Processed food for infants, children below five, pregnant or breast feeding mothers, people on special diets, elders, and sufferers

of certain diseases should be informed of the portion size, method of use and other necessary instructions, including the impact of

the food on human health. If the product has been approved as meeting Indonesian Islamic standards, then ―Halal‖ should appear

on the package (Document Reference 2014).

Appendix 3.6.3. Corporate Tax

Company are taxed at flat rate of 25% (Urbach Hawker Young 2014). Small enterprise with annual turnover less than 50 billion Rupiah are

entitled to 50% tax reduction, while large public companies that satisfy minimum 40% of listing requirement are entitled to a tax discount of

5% (Desenvolvimento 2014). This demonstrates that the corporate tax of Indonesia is low for expanding the business.